Small businesses often face unique challenges when it comes to managing their finances, and hiring a credit controller can offer several benefits:


  • Cash Flow Management: A credit controller helps ensure that invoices are paid on time, improving cash flow for the business. They monitor outstanding invoices, follow up with customers, and implement strategies to minimise late payments.


  • Reduced Bad Debts: By implementing effective credit control procedures, a credit controller can help reduce the risk of bad debts. They assess the creditworthiness of customers, set credit limits, and identify potential risks before extending credit.


  • Improved Efficiency: Handling credit control tasks can be time-consuming for small business owners. Hiring a dedicated credit controller frees up their time to focus on core business activities, leading to increased productivity and efficiency.


  • Professional Debt Collection: If invoices remain unpaid, a credit controller can escalate the collection process professionally. They have the expertise to negotiate payment terms, arrange payment plans, and, if necessary, initiate legal action to recover debts.


  • Maintaining Customer Relationships: Effective credit control is about more than just chasing payments; it’s also about maintaining positive relationships with customers. A credit controller can handle communication regarding overdue invoices tactfully, preserving customer goodwill.


  • Compliance and Risk Management: Credit controllers stay up-to-date with relevant regulations and ensure that the business complies with legal requirements. They also assess the financial stability of customers and mitigate risks associated with extending credit.


  • Financial Reporting: A credit controller provides valuable insights into the financial health of the business by generating reports on receivables, aging balances, and payment trends. This information helps business owners make informed decisions about credit policies and customer relationships.


  • Strategic Planning: With their understanding of cash flow and customer payment patterns, a credit controller can contribute to strategic planning initiatives. They can offer recommendations for improving credit control processes, reducing debtor days, and optimising working capital.


  • Client Relationships: Having more time to focus on your clients needs and relationships thus building your business without the need for chasing for payment for overdue invoices.


  • Life Balance: Most small businesses tend to work late Friday nights or the weekend chasing up overdue invoices. Then you are unable to respond to queries until the following week. Hiring someone for a few hours a week helps maintain your life balance and be readily available for your clients.


Overall, hiring a credit controller can be a wise investment for small businesses, as it helps mitigate financial risks, improve cash flow, and ensure the smooth operation of the business. By outsourcing credit control functions or hiring an in-house specialist, small businesses can strengthen their financial position and focus on long-term growth and success.


Outsourcing your credit control is a sure-fire way to prevent your business’ finances from suffering today, tomorrow, and beyond. Call us at 01492 22742 or email [email protected] to find out how we can help you.



Published on 26 March 2024